How to Setup Local Company Branch in Dubai, UAE?
The luxury and highly-evolving Dubai is a sea of opportunities. Business setup in Dubai is a dream of many. From cosmetics to medicine to small businesses, Dubai welcomes all. This also allows Local Company Branch Setup in Dubai. It works as a golden opportunity for foreign companies who want to retain 100% ownership of their business.
What is a branch company?
Branch office is a separate office or an extension of an on-going business, mostly a foreign parent company. It is a great way to expand the local business. Like any other company, the branch office also needs a trade license for the proposed business activities
How to Open a Local Company Branch in Dubai?
Branch office setup in Dubai is possible in the mainland and free zone. Opening a branch of a free zone company in Dubai is subject to registration, licensing and specific share capital requirements as per the authorities. While planning to set up a branch office in Dubai, you must consider the following things
- Branch company can run the same activities as the parent company.
- Parent company needs to apply for the necessary licenses with authorities of Dubai to get permission for branch company.
- Branch company is considered as a part of the foreign company and not a separate entity.
- The obligation and debt of the branch company will be a liability of the parent company.
- Taxation will be applicable only on the income earned.
Documents Needed For Local Company Branch Setup in Dubai
Business Link UAE helps you with a smooth registration process and the documentation part that includes tradename registration and more. Here’s the list of documents required:
- Proof of reserved trade name
- Application for registration and licensing
- Director’s passport copy and NOC from present sponsor
- Parent company license copy, memorandum of association and certificate of registration
- Approval from other authorities basis business activity, if any
Now all these documents, along with the registered office lease agreement, need to be submitted to the Department of Economic Development (DED) Dubai for acquiring the Certificate of Registration for the branch company.
Once done with the documents, its time to get the license to start a branch office in Dubai. Just like any other company, a branch company is eligible to have any of these licenses
- General trading license to carry out trading activities
- Industrial license for various industrial activities
- Commercial license to sell good and services in the area
- Or, any other license issued by free zone authorities bases on the area of interest
Business Link UAE can help you understand the licensing requirements in detail that apply to your branch office.
Taxation of Branch of Local Company in Dubai
As already discussed, the taxation will be applicable only on the income earned in the UAE, but they need to register for VAT. Yes, there is a specific tax regime of 20% corporate tax for branch companies set up by the foreign banks. Else, it is well-known that Dubai has unmatched flexibility with its taxation system.
It is a great business opportunity to set up a branch office in Dubai and earn the benefits you always wanted to. Business Link UAE is here to guide you throughout the process and help you register your company. Our consultants take care of the clients from the nascent stage of finding a location, local agents to documentation and licensing and more. Feel free to contact us regarding any visa or licensing terms in Dubai, UAE.